Why Crypto Exchanges Carry Out KYC Procedures

April 16, 2019, by Interstein N.
If you sign up for a cryptocurrency exchange, you will usually need to prove your identity as part of a Know-Your-Customer (KYC) procedure. Here’s why KYC procedures are necessary―and how they keep you safe.
how customer verification protects you

Know-Your-Customer (KYC) procedure. Here’s why KYC procedures are necessary―and how they keep you safe.

When cryptocurrencies first emerged, they were entirely unregulated. This is no longer the case. Now, crypto exchanges like Jubiter carry out Know-Your-Customer procedures in order to identify their users. This simply means that you must prove your identity before you use an exchange.

Why KYC Exists

KYC measures didn’t originate in the crypto world. They are used by almost all services that handle money, including banks, foreign exchanges, and online gambling sites. This means that KYC regulations are an important step forward for cryptocurrency, as they allow it to receive the same respect that mainstream services currently enjoy.

The alternative is a “wild west” where crypto-related crime runs rampant. Bitcoin was once seen as a tool for unregulated and illegal black markets such as the Silk Road. But thanks to the fact that many cryptocurrency exchanges are implementing KYC procedures, Bitcoin is largely being used for legitimate purposesnot for criminal activity.

How KYC Works

Although identity verification may seem to be a burden, it has many benefits. Above all else, it allows exchanges to ensure that their services are not being used to carry out illegal, fraudulent, or dishonest activity. By denying services to unauthorized users, exchanges can offer much safer services to their legitimate customers.

KYC regulations are also closely related to Anti-Money Laundering (AML) regulations, which prevent financial services from being used to generate illegal revenue. When AML regulations are combined with KYC procedures, it becomes virtually impossible for bad actors to abuse the services of a cryptocurrency exchange.

KYC On Jubiter

At Jubiter, we carry out KYC procedures, but we also keep user concerns in mind. KYC measures are often criticized due to the fact that they can be used to deny access to users depending on their location. However, Jubiter’s exchange is available in over 160 countries, so it is likely that you will be able to use Jubiter no matter where you are.

Jubiter also understands that KYC checks can be time-consuming, so on our exchange, you don’t need to prove your identity right away. You only need to verify your identity when you want to deposit, withdraw or buy Bitcoin with fiat currency. You can start trading Bitcoin with nothing more than an email address―get started today at Jubiter.com.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.

×